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Grocery Stores & Supermarkets Industry Overview

Excerpt from Grocery Stores & Supermarkets Report

Companies in this industry operate retail stores that offer a general selection of food products. Major companies include Kroger, Safeway, and Publix (all based in the US), as well as AEON (Japan), METRO (Germany), Royal Ahold (the Netherlands), and Tesco (the UK).

Competitive Landscape

Population growth and consumer tastes drive demand. Because margins are low, the profitability of individual companies depends on high volume sales and efficient operations. Large companies can offer a wide selection of products and have advantages in purchasing, distribution, marketing, and finance. Small companies can compete effectively by offering specialty products, serving a local market, or providing superior customer service. The US industry is concentrated: the 50 largest companies generate about 70 percent of revenue.

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